The press release states:
““The determination of whether a worker is an employee or independent contractor is the responsibility of businesses,” says Denver-based Avitus Group Human Resource and Risk Management Consultant Dawn Wilson. “This is an issue many businesses don’t ask about, but should as IRS penalties for misclassifications can be steep.”
In May 2015, Avitus Group launched a worker classification online Q & A forum, inviting Colorado businesses to submit worker classification scenarios/questions to HR professionals located in Denver. The Q & A forum includes a quick yes/no worker classification guide that is designed to help a business determine whether a worker is an employee or an independent contractor. The guide takes a business owner/manager through the top 20 questions, from the IRS, that determine the worker’s correct classification. The guide also provides a case study from a court case involving workers on a horse farm, as the agriculture industry is also prone to worker misclassification. Agriculture is a $41 billion dollar industry in Colorado, employing nearly 173,000 people, according to the Colorado Department of Agriculture.
Avitus Group human resource experts say if the Internal Revenue Service (IRS) challenges the classification made by the business, the burden of proof is on the taxpayer (business). Misclassifications may result in substantial monetary penalties, payment of back taxes, issues with wage and hour laws and the payment and penalties for unpaid workers compensation insurance premiums. Additionally, criminal actions may be brought if misclassifications are determined to be intentional and/or fraudulent…”